High-Speed Rail Lines Around the World

Richard told the Assembly Transportation Committee that there is also risk in not pursuing the project, including the loss of $3.3 billion in already-promised federal funding and the lack of planning for future transportation needs.

The rail board chairman also insisted that the project has the ability to collect funding from the state's cap-and-trade program, which is meant to offset greenhouse gases.

That has been disputed by the LAO. "We've been given by the governor...a legally dedicated revenue source," Richard said. That brought a sharp rejoinder from the committee chair.

"The legislature is the one that makes the appropriations," said Assemblyman Rich Gordon, D-Menlo Park.